⚡ Flash Summary
Hoechst Pakistan Limited (HPL) reported unconsolidated interim financial statements for the nine months ended September 30, 2025. Net sales increased by 20% to Rs. 24,569 million compared to the same period last year, driven by growth in Cardiovascular, Consumer Healthcare, and Diabetes portfolios. Gross profit margin improved to 35% from 31% due to renegotiation of supply prices and production efficiency. Profit after tax significantly increased to Rs. 2,220 million from Rs. 1,205 million in 2024, although other expenses increased due to adverse exchange rate movements.
📌 Key Takeaways
- 📈 Net sales grew by 20% reaching Rs. 24,569 million.
- 💰 Gross profit surged to Rs. 8,667 million.
- 📊 Gross margin improved significantly from 31% to 35%.
- ⚙️ Operating profit increased substantially to Rs. 3,959 million.
- 📉 Finance costs slightly decreased to Rs. (76) million.
- ✅ Profit after tax jumped to Rs. 2,220 million.
- ⭐ Earnings per share rose to Rs. 230.14.
- ⬆️ Distribution and marketing expenses increased to 14% of net sales.
- ⬇️ Administrative expenses decreased to 3% of net sales.
- exchange loss increased to Rs. 272 million.
- 🌱 H-Pack Wellness (Private) Limited contributed Rs. 13.8 million in revenue and reported net loss of Rs. 8.7 million.
- 💸 Investment in H-Pack Wellness (Private) Limited is Rs. 20 million.
- 🌎 Geographic revenue mix: Pakistan (Rs. 23,385 million), Afghanistan (Rs. 1,183 million).
🎯 Investment Thesis
HPL showcases robust financial performance with strong sales and profit growth. The improvement in gross margin due to cost management initiatives makes the stock favorable. The expansion into wellness product through H-Pack is a strategic move. Recommend a BUY rating based on these factors. The price target is based on sector peers, with a short term horizon, as the company is in expansion mode.
Disclaimer: AI-generated analysis. Not financial advice.